Question
The following transactions relate to Malone Custom Furniture Manufacturings past month: 1. Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40%
The following transactions relate to Malone Custom Furniture Manufacturings past month:
1. Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40% of which was indirect labor.
2. Used in production: direct materials, $12,000; indirect materials,$5,500
3. Allocated manufacturing overhead to jobs, 150% of direct labor costs.
4. Completed production on jobs with costs of $55,000.
5. Sold inventory on account, $64,000; cost of goods sold, $35,000.
a. [15 points 3 points each] Record the journal entries for each of the transactions.
b. [5 points] Assume that actual manufacturing overhead costs were $25,000. Record the journal entry to adjust for underallocated/overallocated overhead.
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